Sterling sank below $1.27 after May said she would step down as prime minister on June 7, paving the way for a contest to replace her. But the British currency later recovered and advanced against the dollar and euro.
Ratings agency Moody’s warned that news of May’s departure “amplifies the uncertainty” over Britain’s withdrawal from the European Union, and “increases the risk of a no-deal Brexit.” US stocks also nudged higher, although the gains were not enough to offset losses earlier in the week.After a strong run for the stocks in the first four months of the year, fresh trade war anxiety has roiled markets throughout May as the United States and China have announced new tariff measures amid sharpening rhetoric.
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